GUPC Wins Panama Canal Claim

The Grupo Unidos por el Canal (GUPC) consortium said it has won a USD 234 million settlement in a dispute concerning cost overruns in the construction of the third set of locks at the Panama Canal.

As announced,  independent technical organization the Dispute Adjudication Board (DAB) established within the framework of the contract between GUPC and Panama Canal Authority (ACP) has ruled in favor of GUPC in two major claims filed by GUPC related to poor quality basalt (main material for the production of concrete in the project) and the delay attributed to ACP in approving the concrete mixture used in the work.

The DAB resolution established that ACP will pay 234 million dollars to GUPS and extend the contract period for six months, GUPC said. The amount is part of a USD 463 million claim.

“These decisions raise the question on if the delays suffered by the project and the economic damage suffered by the Contractor and its partners, could have been avoided with a more reasonable stance by ACP, in the framework of the contract and adjusted to international practice. It is clear that the lack of timely recognition of the claims not only multiplies the losses but it has an accumulative negative effect on the Project, ” said Giuseppe Quarta, CEO of GUPC.

“We will analyze the DAB report to understand their economic determination, which is between 50% and 58% of what was submitted by GUPC and the time extension of 6 months,” he added.

The consortium has made a series of claims reaching up to USD 2.3 billion over the expansion work issues.

GUPC  is the contractor for the design and construction of the Third Set of Locks – Home Project of the Panama Canal Expansion Program.

GUPC is formed by Sacyr of Spain, Salini – Impregilo of Italy, Jan De Nul of Belgium and Constructora Urban, SA (CUSA) of Panama.